Bank of Qingdao : PROPOSED ISSUANCE OF A SHARES AND H SHARES BY WAY OF RIGHTS ISSUE

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Bank of Qingdao Co., Ltd.*

ڡࢥვБٰ΅Ϟࠢʮ̡*

(A joint stock company incorporated in the People's Republic of China with limited liability)

(H Shares Stock Code: 3866)

(Preference Shares Stock Code: 4611)

PROPOSED ISSUANCE OF A SHARES AND

H SHARES BY WAY OF RIGHTS ISSUE

The Board is pleased to announce that, the Board proposes to seek for the approval of the Rights Issue and relevant authorizations regarding the Rights Issue by Shareholders, of which, the Rights Issue will include the issuance of A Rights Shares and H Rights Shares. The Rights Issue is subject to, among others, the approval by Shareholders at the General Meeting, the approval by A Shareholders at the A Share Class Meeting and the approval by H Shareholders at the H Share Class Meeting.

For the Rights Issue, it is proposed to make allotment to all Shareholders on the basis of up to three (3) Rights Shares for every ten (10) existing Shares. The portion of both A Share Rights Issue and H Share Rights Issue are the same. A Share Rights Issue will proceed on a best effort basis and H Shares Rights Issue will be fully underwritten pursuant to Rule 7.19(1) of the Hong Kong Listing Rules. The Rights Issue Price is determined by using market discount method based on the trading conditions of A Shares and H Shares in the market prior to the publication of the issuance announcement. The final Rights Issue Price will be determined through the negotiation between those parties authorized by the Board and the sponsor institution(s) (underwriter(s)) with reference to the market conditions before the issuance.

If, based on 4,509,690,000 Shares in issue of the Bank as at the date of this announcement (including 2,746,655,020 A Shares and 1,763,034,980 H Shares), and assuming there is no change in the issued share capital of the Bank between the date of this announcement and the Record Date, the Bank expects to make estimation on the basis of up to three (3) Rights Shares for every ten (10) existing Shares, and the total number of Rights Shares available for allotment and issuance will not exceed 1,352,907,000 Shares, among which, the number of A Rights Shares would not exceed 823,996,506 Shares and the number of H Rights Shares would not exceed 528,910,494 Shares.

Total proceeds raised from the Rights Issue will not exceed RMB5.0 billion. The final total proceeds will be determined based on the Rights Issue Price and the number of Rights Shares at the time of issuance. Net proceeds from the Rights Issue will entirely be applied for the replenishment of the Bank's core tier-one capital, to enhance the Bank's capital adequacy ratio, support the sustainable and healthy development of the Bank's business in the future as well as strengthen the Bank's capital strength and competitiveness.

The Bank will despatch a circular containing the notices for convening the General Meeting and the H Share Class Meeting to the H Shareholders pursuant to the relevant requirements of the Articles of Association as soon as practicable.

Prior to the commencement of the H Share Rights Issue, the Bank will make a further announcement and issue the H Share Rights Issue Prospectus, which will contain all relevant details of Rights Issue, including the definitive basis on which the Rights Shares to be issued, the maximum number of Rights Shares to be issued, the Rights Issue Price, the period of closure of the register of members for the H Shares and the H Share Rights Issue Record Date, the trading arrangements for H Rights Shares, the arrangements for the excess H Rights Shares, the underwriting arrangements and the expected timetable of the Rights Issue.

This announcement is made pursuant to the general disclosure requirements under Rule 13.09(1) of the Hong Kong Listing Rules.

As the Rights Issue is subject to, among others, the approval of the Shareholders at the General Meeting, the approval by A Shareholders at the A Share Class Meeting and the approval by H Shareholders at the H Share Class Meeting, the Rights Issue may or may not materialize. The H Share Rights Issue is conditional upon the fulfilment of the conditions set out in the section headed "Conditions of the H Share Rights Issue". If the conditions are not fulfilled, the H Share Rights Issue will not proceed. Shareholders and investors are advised to exercise caution when dealing in H Shares.

INTRODUCTION

The Board is pleased to announce that, the Board proposes to seek for the approval of the Rights Issue and relevant authorizations regarding the Rights Issue by Shareholders, of which, the Rights Issue will include the issuance of A Rights Shares and H Rights Shares. Net proceeds from the Rights Issue will entirely be applied for the replenishment of the Bank's core tier-one capital, to enhance the Bank's capital adequacy ratio, support the sustainable and healthy development of the Bank's business in the future as well as strengthen the Bank's capital strength and competitiveness.

H Share Rights Issue will be conditional upon, among others, the fulfilment of the following matters (details of which could be referred to the section headed "Conditions of the H Share Rights Issue" below):

• (i) the approval by Shareholders at the General Meeting, the A Share Class Meeting and the H Share Class Meeting by the way of special resolution in accordance with the relevant requirements of the Articles of Association; and

• (ii) the approval by the CSRC and other relevant regulatory authorities.

DETAILS OF THE RIGHTS ISSUE PROPOSAL

The Rights Issue proposal will include the issuance of A Rights Shares to A Shareholders and the issuance of H Rights Shares to H Shareholders, respectively, based on the following preliminary terms, which is subject to, among others, the implementation of the Rights Issue proposal and actual market conditions.

Class and Par Value of Rights Shares

• : A Shares and H Shares with a par value of RMB1.00 per Share.

  Base, Proportion and

  Number of the Rights Issue

• : The A Share Rights Issue is proposed to be based on the total number of A Shares after the trading hours on the A Share Rights Issue Record Date, and the allotment will be made to all A Shareholders for Rights Issue on the basis of up to three (3) Rights Shares for every ten (10) A Shares. The H Share Rights Issue is proposed to be based on the total number of H Shares on the H Share Rights Issue Record Date, and the allotment will be made to all H Shareholders for Rights Issue on the basis of up to three (3) Rights Shares for every ten (10) H Shares, with fractions of less than one (1) Rights Share to be dealt with according to the relevant requirements of the stock exchanges and securities registration and settlement institutions of the places where the securities are traded at. The subscription portion of both A Shares and H Shares are the same.

  If, based on the Bank's total share capital of 4,509,690,000 Shares as at the date of this announcement (including 2,746,655,020 A Shares and 1,763,034,980 H Shares), and assuming there is no change in the issued share capital of the Bank between the date of this announcement and the Record Date, the number of Rights Shares is estimated to be not more than 1,352,907,000 Shares, among which, the number of A Rights Shares would not exceed 823,996,506 Shares and the number of H Rights Shares would not exceed 528,910,494 Shares. In the event that the total share capital of the Bank changes due to any bonus issue, capital conversion from capital reserve and other reasons before the Rights Issue, the number of Rights Shares will be adjusted accordingly based on the total share capital after the change.

  A Share Rights Issue will proceed on a best effort basis and H Shares Rights Issue will be fully underwritten pursuant to Rule 7.19(1) of the Hong Kong Listing Rules.

Rights Issue Price

• : The Rights Issue Price is determined by using market discount method based on the trading conditions of A Shares and H Shares in the market prior to the publication of the issuance announcement. The final Rights Issue Price will be determined through the negotiation between those parties authorized by the Board and the sponsor institution(s) (underwriter(s)) with reference to the market conditions before the issuance. The Rights Issue Prices of A Shares and H Shares are the same after exchange rate adjustments.

  Target Subscribers for the Rights Issue

• : In the Rights Issue, the target A Share subscribers for the Rights Issue will be all A Shareholders, who registered with the Shenzhen branch of China Securities Depository and Clearing Corporation Limited after the trading hours on the A Share Rights Issue Record Date, and the target H Share subscribers for the Rights Issue will be all H Shareholders determined on the H Share Rights Issue Record Date. The Record Date of the Rights Issue will be otherwise determined after the approval of the proposal for Rights Issue by CSRC.

  Distribution Plan for Accumulated Undistributed Profits Prior to the

  Rights Issue

  Use of ProceedsValidity Period of the Resolution

• : The accumulated undistributed profits of the Bank prior to the Rights Issue shall be shared by all Shareholders on a pro-rata basis of their shareholding after the completion of the Rights Issue.

• : The proceeds raised from the Rights Issue will not exceed RMB5.0 billion (inclusive).

  After deducting relevant issuance fees, the net proceeds raised from the Rights Issue will entirely be applied for the replenishment of the Bank's core tier-one capital, to enhance the Bank's capital adequacy ratio, support the sustainable and healthy development of the Bank's business in the future as well as strengthen the Bank's capital strength and competitiveness.

• : The effective period of the resolution on the Rights Issue shall be 12 months starting from the date on which the resolution is approved by the Bank's General Meeting, the A Share Class Meeting and the H Share Class Meeting.

  Shareholders' Approval

• : The Rights Issue is subject to, among others, the approval by Shareholders at the General Meeting, the approval by A Shareholders at the A Share Class Meeting and the approval by H Shareholders at the H Share Class Meeting.

Qualified H Shareholders

Subject to, among others, approval by the Shareholders at the relevant general meetings, the Bank will send the H Share Rights Issue Prospectus to the Qualified H Shareholders, including the PRC Southbound Trading Investors (and to the extent permitted by the relevant laws, to the Excluded Shareholders for information purposes only). To qualify for the H Share Rights Issue, a Shareholder must:

• (i) be registered as a H Shareholder of the Bank on the H Share Rights Issue Record Date; and

• (ii) not be an Excluded Shareholder.

Before the commencement of the H Share Rights Issue, the Bank will announce the date by which the H Shareholders must lodge any transfer documents in relation to the existing H Shares (together with the relevant H Share certificates) with the H Share Registrar, in order for the transferee to become a H Shareholder of the Bank on or before the H Share Rights Issue Record Date.

The PRC Southbound Trading Investors will not be excluded from participation in the H Share Rights Issue.

H Share Rights Issue Record Date

The H Share Rights Issue Record Date and the trading arrangements for the nil-paid H Rights Shares will be determined by the Board and once so determined, a further announcement will be made by the Bank. The H Share Rights Issue is conditional upon the fulfilment of the conditions set out under the section headed "Conditions of the H Share Rights Issue" in this announcement. The H Share Rights Issue Record Date will not precede the date of the General Meeting, the A Share Class Meeting and the H Share Class Meeting or the date on which all relevant PRC governmental and regulatory approvals in relation to the Rights Issue are granted to the Bank.

Trading of the H Rights Shares

Dealings in the H Rights Shares in both their nil-paid and fully-paid forms registered with the H Share Registrar will be subject to the payment of stamp duty in Hong Kong. A further announcement will be made by the Bank regarding the trading arrangements for the H Rights Shares (in nil-paid and fully-paid forms) after such arrangements have been finalized by the Board.

Status of the H Rights Shares

The H Rights Shares, when allotted and fully paid, will rank pari passu in all respects with the H Shares then in issue. Holders of fully-paid H Rights Shares will be entitled to receive all future dividends and distributions which are declared, made or paid after the date of allotment and issue of the H Rights Shares.

Rights of Overseas Shareholders

The H Share Rights Issue Prospectus will not be registered under the applicable securities legislation of any jurisdiction other than Hong Kong. The Bank will make enquiries regarding the feasibility of extending the H Share Rights Issue to the Overseas Shareholders. If, based on the advice received from the relevant legal advisers, the Board considers that it is necessary or expedient not to offer the H Rights Shares to certain Overseas Shareholders (who are Excluded Shareholders) on account either of the legal restrictions under the laws of the place of his/her/their registered address(es) or the requirements of the relevant regulatory body or stock exchange in that place, the H Share Rights Issue will not be made available to the Excluded Shareholders.

The Bank will send copies of the H Share Rights Issue Prospectus to the Excluded Shareholders for their information only, but the Bank will not send any provisional allotment letters or excess application forms to the Excluded Shareholders.

Application for Excess H Rights Shares

Qualified H Shareholders of the Bank (other than the PRC Southbound Trading Investors) may apply, by way of excess application, for any H Rights Shares to which unsold entitlements of the Excluded Shareholders relate and for any H Rights Shares provisionally allotted to the Qualified H Shareholders but not accepted.

Application for excess H Rights Shares may be made by completing the excess application form to be despatched to the Qualified H Shareholders together with the H Share Rights Issue Prospectus and lodging the same with a separate remittance for such excess H Rights Shares. The Board will allocate the excess H Rights Shares at its discretion on a fair and equitable basis but will give preference to topping-up odd lots to whole board lots. The remaining excess H Rights Shares (if preference will be given) or all excess H Rights Shares (if no preference will be given) will be allocated to Qualified H Shareholders (other than the PRC Southbound Trading Investors) who have applied for excess H Rights Shares on a pro-rata basis with reference to their number of excess H Rights Shares applied for.

Conditions of the H Share Rights Issue

It is expected that the H Share Rights Issue will be conditional upon the fulfilment of the following matters:

• (i) the approval of the Rights Issue by the Shareholders at the General Meeting;

• (ii) the approval of the Rights Issue at the H Share Class Meeting and the A Share Class Meeting, respectively;

• (iii) the approval of the Rights Issue by the CSRC and other relevant regulatory authorities;

• (iv) the Listing Committee of the Hong Kong Stock Exchange agreeing to grant the listing of, and permission to deal in, the H Rights Shares in their nil-paid and fully-paid forms on the Hong Kong Stock Exchange, either unconditionally or subject to such conditions which the Bank accepts and the satisfaction of such conditions (if any) by no later than the date of the delivery of the H Share Rights Issue Prospectus; and

(v) the delivery to the Hong Kong Stock Exchange and filing and registration of all documents in relation to the H Share Rights Issue as required by laws to be filed to and registered with the Companies Registry in Hong Kong.

None of the above conditions for completion of the H Share Rights Issue may be waived by the Bank or has been satisfied as of the date of this announcement. If the conditions are not fulfilled, the H Share Rights Issue will not proceed.

Conditions of the A Share Rights Issue

It is expected that the A Share Rights Issue will be conditional upon the fulfilment of the following matters:

• (i) the approval of the Rights Issue by the Shareholders at the General Meeting;

• (ii) the approval of the Rights Issue at the A Share Class Meeting and the H Share Class Meeting, respectively;

• (iii) the approval of the Rights Issue by the CSRC and other relevant regulatory authorities; and

• (iv) the subscription of the A Rights Shares by the A Shareholders being at least 70% of the A Share Rights Issue.

None of the above conditions for completion of the A Share Rights Issue may be waived by the Bank or has been satisfied as of the date of this announcement. If the conditions are not fulfilled, the A Share Rights Issue will not proceed.

CHANGE IN REGISTERED CAPITAL AND THE CORRESPONDING AMENDMENTS TO RELEVANT CLAUSES IN THE ARTICLES OF ASSOCIATION

Upon the completion of the Rights Issue, the Bank shall correspondingly adjust its registered capital and the relevant clauses of the Articles of Association. For such regard, the Board proposes to seek for the approval from Shareholders that, upon the completion of the Rights Issue, the Bank's registered capital shall be adjusted in accordance with the issuance results of the Rights Issue and the approval by the regulatory authorities of the banking industry in China. Based on the issuance results of the Rights Issue and the adjustment of the Bank's registered capital, the clause related to the registered capital (Article 5 of the Articles of Association) and the clause related to the total number of shares and shareholding structure (Article 23 of the Articles of Association) in the Articles of Association shall be amended accordingly. Details of such amendments will be provided to the Shareholders in a further announcement in relation to the Rights Issue to be issued by the Bank in due course.

The above change in registered capital and the corresponding amendments to relevant clauses in the Articles of Association are subject to the approval by Shareholders at the General Meeting, the approval by A Shareholders at the A Share Class Meeting and the approval by H Shareholders at the H Share Class Meeting, respectively.

UNDERWRITING

The Bank intends to proceed with the H Share Rights Issue on a fully underwritten basis in accordance with Rule 7.19(1) of the Hong Kong Listing Rules and such underwriting will be conducted in accordance with the requirements of the Hong Kong Listing Rules. Details of the underwriting arrangement in relation to the Rights Issue will be provided to the Shareholders in a further announcement on the Rights Issue to be issued by the Bank in due course. The A Share Rights Issue will however proceed on a best effort basis as required under the applicable PRC laws and regulations. Under the applicable PRC laws and regulations and as classified by the CSRC, the A Share Rights Issue may only proceed if the subscription level of the A Rights Shares is at least 70% of the A Share Rights Issue. The rights to subscribe for the A Shares which are not taken up will lapse and no new A Shares will be issued or allotted pursuant to such rights.

FURTHER ANNOUNCEMENT IN RELATION TO THE H SHARE RIGHTS ISSUE AND ISSUANCE OF H SHARE RIGHTS ISSUE PROSPECTUS

Prior to the commencement of the H Share Rights Issue, the Bank will make a further announcement and issue the H Share Rights Issue Prospectus, which will contain all relevant details of the Rights Issue, including the definitive basis on which the Rights Shares are to be issued, the maximum number of the Rights Shares to be issued, the Rights Issue Price, the period of closure of the register of members for the H Shares and the H Share Rights Issue Record Date, the trading arrangements for H Rights Shares, the arrangements for the excess H Rights Shares, the underwriting arrangements and the expected timetable of the Rights Issue.

REASONS FOR THE RIGHTS ISSUE AND USE OF PROCEEDS

Reasons for the Rights Issue of the Bank are as follows:

• (1) Regulatory Authorities Have Further Lifted the Requirements for Capital Supervision of Banks

  In recent years, the China Banking and Insurance Regulatory Commission has been continuously tightening the capital supervision of commercial banks. The Administrative Measures for the Capital of Commercial Banks (for Trial Implementation) ( ਠุვБ ༟͉၍ଣ፬ج€༊Б)') issued by the former China Banking Regulatory Commission in 2012 imposed stricter and more prudent regulations on the qualification standards and measurement requirements of various types of capital, and further strengthened the capital regulatory requirements for commercial banks. Since 2016, the People's Bank of China has been implementing a "macro and discreet assessment system" to guide financial institutions of the banking industry to strengthen self-restrain and self-discipline management from seven aspects including capital and leverage, assets and liabilities, liquidity, pricing behavior, asset quality, cross-border financing risks and credit policy implementation. As the business continues to develop in the next few years, it is expected that the capital gap will restrict the development of the Bank to a certain degree. In addition, in recent years, domestic and foreign regulatory authorities have continuously enhanced the requirements for banks' capital supervision, and the capital requirements for banks will be further increased.

• (2) The Bank's Future Business Development Needs Capital Support

  In recent years, the Bank's asset scale has grown steadily and rapidly. It is expected that the business scale of the Bank will continue to maintain a steady growth trend in the next few years. The Bank is required to maintain sufficient capital to support the stable development of its business and asset scale. At the same time, the Bank is required to reserve a certain proportion of capital to mitigate risk on premise of constantly satisfying the minimum requirements on capital adequacy of the regulatory authorities to further enhance the ability to resist risks and respond to the uncertainties of future macroeconomic development. In order to maintain the rapid development momentum, the Bank regards capital replenishment management planning as an important part of the overall development strategy, insists on matching capital management goals with strategic development goals, and matches asset scale growth with capital scale growth to ensure sustainable business development in the long term.

After deducting relevant issuance fees, the net proceeds raised from the Rights Issue will entirely be applied for the replenishment of the Bank's core tier-one capital, to enhance the Bank's capital adequacy ratio, support the sustainable and healthy development of the Bank's business in the future as well as strengthen the Bank's capital strength and competitiveness.

SHAREHOLDING STRUCTURE OF THE BANK

For illustrative purpose, the following table sets out the Bank's current shareholding structure and the proposed shareholding structure upon the completion of the Rights Issue, assuming the Rights Issue is conducted on the basis of three (3) Rights Shares for every ten (10) existing Shares and the Rights Shares are fully subscribed, and no change in the issued share capital of the Bank between the date of this announcement and the Record Date:

As at the date of this announcementImmediately after the completion of the Rights Issue

As a	Number of
percentage of	Shares to be
total issued	issued
Number of	share capital of	according to the	Number of	share capital of
Class of Shares	issued Shares	the Bank (%)	Rights Issue	Shares	the Bank (%)
A Share	2,746,655,020	60.91%	823,996,506	3,570,651,526	60.91%
H Share	1,763,034,980	39.09%	528,910,494	2,291,945,474	39.09%
Total	4,509,690,000	100.00%	1,352,907,000	5,862,597,000	100.00%

As a percentage of total issued

The following table sets out the Bank's current shareholding structure and the proposed shareholding structure upon the completion of the Rights Issue, assuming the Rights Issue is conducted on the basis of three (3) Rights Shares for every ten (10) existing Shares, 70% of A Rights Shares are subscribed and H Rights Shares are fully subscribed, and no change in the issued share capital of the Bank between the date of this announcement and the Record Date:

As at the date of this announcementImmediately after the completion of the Rights Issue

As a	Number of
percentage of	Shares to be
total issued	issued
Class of	Number of	share capital of	according to the	Number of	share capital of
Shares	issued Shares	the Bank (%)	Rights Issue	Shares	the Bank (%)
A Share	2,746,655,020	60.91%	576,797,554	3,323,452,574	59.18%
H Share	1,763,034,980	39.09%	528,910,494	2,291,945,474	40.82%
Total	4,509,690,000	100.00%	1,105,708,048	5,615,398,048	100.00%

As a percentage of total issued

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According to public information, as at the date of this announcement, the Bank's public float percentage complies with the requirements under Rule 8.08 of the Hong Kong Listing Rules. Upon the completion of the Rights Issue, the Bank's public float percentage will continue to comply with the requirements under Rule 8.08 of the Hong Kong Listing Rules.

CIRCULAR

The Bank will despatch a circular containing the notices for convening the General Meeting and the H Share Class Meeting to the H Shareholders pursuant to the relevant requirements of the Articles of Association as soon as practicable.

GENERAL

This announcement is made pursuant to the general disclosure requirements of Rule 13.09(1) of the Hong Kong Listing Rules.

As the Rights Issue is subject to, among others, the approval of the Shareholders at the General Meeting, the approval by A Shareholders at the A Share Class Meeting and the approval by H Shareholders at the H Share Class Meeting, the Rights Issue may or may not materialize. The H Share Rights Issue is conditional upon the fulfilment of the conditions set out in the section headed "Conditions of the H Share Rights Issue" in this announcement. If the conditions are not fulfilled, the H Share Rights Issue will not proceed. Shareholders and investors are advised to exercise caution when dealing in H Shares.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following expressions and terms have the following meanings:

"A Rights Share(s)"	the new A Share(s) proposed to be placed and issued to the Qualified
A Shareholders pursuant to the A Share Rights Issue (less any A
Shares not taken up by A Shareholders)
"A Share(s)"	the domestic listed shares of RMB1.00 each in the share capital of
the Bank, which are listed on the Shenzhen Stock Exchange and
traded in RMB
"A Share Rights Issue	a date to be determined by the Board or its authorized person(s) by
Record Date"	reference to which entitlements to the A Share Rights Issue are to be
determined
"A Share Rights Issue"	the proposed issue of up to 823,996,506 A Rights Shares at the
Rights Issue Price on the basis of up to three (3) A Rights Shares for
every ten (10) existing A Shares held on the A Share Rights Issue
Record Date
"A Shareholder(s)"	holder(s) of A Shares
"A Share	the A share class meeting of the Bank to be held to consider and, if
Class Meeting"	thought fit, approve, among others, the Rights Issue
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"Articles of Association"	the Articles of Association of the Bank
"Bank"	Bank of Qingdao Co., Ltd. and its branches
"Board"	the board of Directors of the Bank
"CSRC"	China Securities Regulatory Commission
"Director(s)"	the director(s) of the Bank
"Excluded Shareholder(s)"	Overseas Shareholder(s) whom the Board, based on relevant opinions
provided by legal advisers, considers it necessary or expedient to
exclude any such Overseas Shareholder(s) from participating in
the Rights Issue on account either of the legal restrictions under
the laws of the place of his/her/their registered address(es) or the
requirements of the relevant regulatory body or stock exchange in
that place
"General Meeting"	the general meeting of the Bank to be held to consider and, if
thought fit, approve, among others, the Rights Issue
"H Rights Share(s)"	the new H Share(s) proposed to be placed and issued to the Qualified
H Shareholders pursuant to the H Share Rights Issue (less any H
Shares not taken up by the H Shareholders)
"H Shares"	overseas listed foreign shares of RMB1.00 each in the share capital
of the Bank, which are listed on the Hong Kong Stock Exchange and
traded in Hong Kong dollars
"H Share Rights Issue	a date to be determined by the Board or its authorized person(s) by
Record Date"	reference to which entitlements to the H Share Rights Issue are to be
determined
"H Share Registrar"	Computershare Hong Kong Investor Services Limited
"H Share Rights Issue"	the proposed issue of up to 528,910,494 H Rights Shares at the
Rights Issue Price on the basis of up to three (3) H Rights Share for
every ten (10) existing H Shares held on the H Share Rights Issue
Record Date
"H Share Rights	the prospectus in relation to the H Share Rights Issue to be issued
Issue Prospectus"	by the Bank and despatched to the H Shareholders, which contains
further details of the H Share Rights Issue
"H Shareholder(s)"	holder(s) of the H Shares
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"H Share	the H share class meeting of the Bank to be held to consider and, if
Class Meeting"	thought fit, approve, among others, the Rights Issue
"HK$"or	Hong Kong dollar, the lawful currency of Hong Kong
"Hong Kong dollars"
"Hong Kong"	the Hong Kong Special Administrative Region of the PRC
"Hong Kong Listing Rules"	the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited, as amended, supplemented or
otherwise revised from time to time
"Hong Kong	The Stock Exchange of Hong Kong Limited
Stock Exchange"
"nil-paid H Rights	the rights to subscribe for H Rights Shares (in the form of H Rights
Share(s)"	Shares in nil-paid form) before the Rights Issue Price is paid
"Overseas Shareholder(s)"	H Shareholder(s) whose name(s) appear(s) on the register of
members of the Bank on the H Share Rights Issue Record Date and
whose registered address(es) is/are in a place outside Hong Kong
"PRC" or "China"	the People's Republic of China, excluding, for the purposes of this
announcement, Hong Kong, the Special Administrative Region of
Macau and Taiwan
"PRC Southbound	PRC investors holding the shares of Hong Kong listed companies
Trading Investors"	through China Securities Depository and Clearing Corporation
Limited, the agent of Shenzhen-Hong Kong Stock Connect

"Qualified A Shareholder(s)" A Shareholder(s) whose name(s) appear(s) on the register of members of the Bank on the A Share Rights Issue Record Date (excluding Excluded Shareholders)

"Qualified H Shareholder(s)" H Shareholder(s) whose name(s) appear(s) on the register of members of the Bank on the H Share Rights Issue Record Date (not being Excluded Shareholders)

"Record Date"	A Share Rights Issue Record Date and/or H Share Rights Issue
Record Date
"Rights Issue"	A Share Rights Issue and/or H Share Rights Issue
"Rights Issue Price"	the final subscription price for the A Rights Shares and the H Rights
Shares to be offered pursuant to the Rights Issue
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"Rights Share(s)"	A Rights Share(s) and/or H Rights Share(s)
"RMB"	Renminbi, the lawful currency of the PRC
"Share(s)"	A Share(s) and/or H Share(s)
"Shareholder(s)"	holder(s) of Shares
"%"	per cent.

By order of the Board Bank of Qingdao Co., Ltd.*

Guo Shaoquan

Chairman

Qingdao, Shandong Province, the PRC

26 February 2021

As at the date of this announcement, the Board comprises Mr. Guo Shaoquan, Mr. Wang Lin and Ms. Lu Lan as executive Directors; Mr. Zhou Yunjie, Mr. Rosario Strano, Ms. Tan Lixia, Mr. Marco Mussita, Mr. Deng Youcheng and Mr. Choi Chi Kin, Calvin as non-executive Directors; Mr. Chen Hua, Ms. Dai Shuping, Mr. Simon Cheung, Ms. Fang Qiaoling and Mr. Tingjie Zhang as independent non-executive Directors.

*Bank of Qingdao Co., Ltd. is not an authorized institution within the meaning of the Banking Ordinance (Chapter 155 of the Laws of Hong Kong), not subject to the supervision of the Hong Kong Monetary Authority, and not authorized to carry on banking and/or deposit-taking business in Hong Kong.

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